Walter A. Viali, PMP Region 6 Mentor PMI

1. Strategic Planning – Shaping the Project Slate Walter A. Viali, PMP Region 6 Mentor PMI

2. My Background… Worked with Texaco in Rome and in Houston for 25 years (1974-1999) PMO “aficionado” since 1983 Consulting since 1999 with several companies on PMO implementation PMI member since 1998 Became a PMP during the last century PMI Houston President in 2007 PMI Region 6 Mentor since 1/1/2011 And, of course………………….

3. Elvis Who?

4. My Roman Elvis Ancestor… Roman Elvis, circa 200 A.D.

5. When Elvis died in 1977, there were three known impersonators…In 2004 there were over 50,000….With this growth rate, in 2022, one of four people on the planet will be an Elvis Tribute Artist (ETA)... So, get ready!

6. … as I’ve been working at it for a while!

7. March 24th, 2011 Out of Galveston, TX on the Carnival Ecstasy 6th Annual Seminar at Sea! Ensure your registration and book by December 31, 2010 For additional reservations and transportation options: Go to www.houstontravelzone.com or email Sherry@houston.travelzone.comor call Sherry at 281-326-8050 Registration officially closes on January 31, 2011 Registration requests received after the January 31th deadline are subject to availability S@S VI Excitingly new, with great presenters, an outstanding keynote speaker, new activities for spouses, great prizes, and new excursions. Also some great pricing for groups. . • Need a few Good Reasons why you should choose to come on the • Seminar at Sea Cruise? • Network with colleagues from other chapters • Attend the informative seminars and earn up to 15 PDUs • See the beautiful scenery, relax, and enjoy four wonderful days of sailing • with 24-hour dining and non-stop entertainment • For questions, contact AJ Collier at president@pmiclg.org or at 713-854-2660 VI

8. Eric Jenett PMP no. 1

9. What We’re Going to Talk About What Is Strategy? From Vision to Projects The PMO and Strategy? Time for the PMO to Step Up The Driver for Strategic Planning Time for Senior Management Buy-in The Processes for Strategic Planning What really works Balanced Portfolios of Projects What About Project Management? Top Project Management Trends for This Year

10. In Plain English….. Strategic Planning gives us direction and tells us which projects will best support the business and therefore increase its probability of success Alignment ensures that, as the business changes, so will the projects we are working on Project Management tells us how to effectively manage these projects and what information to generate and communicate, to ensure that the overall process is working as smoothly as possible

11. Why Plan? “Planning is an unnatural process. It’s much more fun to do something. And, the nice thing about not planning, is that failure will come as a complete surprise, rather than being preceded by a period of worry and depression”… We love to react and hate to plan, but lack of planning will result in delays, rework, cost increases and even greater problems...

12. What is Strategy? Strategy is foresight: the deep intellectual challenge of trying to see and understand when the future is still “formless”, communicating that foresight and mobilizing the organization to act Strategy is a process in motion, unending and never complete, constantly adapting to in accord with events

13. What is Strategy? Strategy is holistic understanding of all the functions of the business – including all, neglecting none Strategy is alignment: creating a shared competitive agenda and preempting misalignment Strategy is an art, assembling a plan from a puzzle of missing and irregular pieces

14. Project Driven Organization Strategies Change Continuously! Everything is a project! Provant Project Management

15. A High-Level View from PMI

16. From Vision to Projects Vision Strategy Portfolio Programs Projects

17. In Plain English….. Portfolios are collections of Programs and Projects that support specific business strategies in an organization Programs are groups of related projects (i.e. Apollo Space Program) Projects are unique endeavors, with a definite start and end, which produce a desired product on time and on budget

18. Support for Organizational PM

19. Support for Organizational PM PgMP

20. Support for Organizational PM PMP, CAPM, RMP, SP

21. Support for Organizational PM OPM3 A OPM3 C

22. Support for Organizational PM Strategic Planning ???

23. Completing the Big Picture We’re working on getting a handle on managing portfolios, programs, and projects through PMI and its standards What about vision and strategy? How do we do that?

24. What Do We Want to Accomplish with Strategic Planning? Establish common vision Agree on company mission Define long-term objectives Develop business strategies Define associated goals Key Performance Indicators (KPIs) Understand which programs and projects are needed to support each long-term objective and business strategy

25. Where Do Projects Fit in Strategic Planning? Each project must clearly support a business strategy because It consumes valuable resources It costs money It impacts a lot of people If a project no longer supports a business strategy, It must be terminated and We need methodologies and controls in place to know how and when to do this

26. The Bottom Line... What we need is the initial alignment of business and projects with continuous monitoring and reporting to ensure all projects adequately support the organization’s business strategies on an ongoing basis. This is not going to happen by itself! Organizational Function (and a Driver) Strategic Planning Processes Overall commitment (not a once off deal!) *

27. Organizational Function - The Project Management Office An “office” staffed by project management professionals who serve their organization’s project management needs Full service provider of project management services Center of project management excellence What does this have to do with Strategic Planning?

28. Organizational Function - The Project Management Office If business long-term objectives, strategies and goals are to be met through projects, then we need to: get a good handle on projects and related processes for managing them ensure continuous alignment of these projects with the business long-term objectives, strategies and goals through persistent performance monitoring and reporting

29. Project Office Models • Project Control - Model 1 • Plan, cost, project management schedule, resources at a project level (ERP implementation) • Develops and supports project management process • Organizational Project Control - Model 2 • Develops and supports extensive software development and organizational processes • Coordinates project management, schedule and cost across the organization • Enterprise Project Management - Model 3 • Supports strategic planning and related alignment of projects • “Owns” the organization’s project managers, trains them and assigns them to projects • Develops and supports the development and organizational processes

30. Model 3 Project Office Projects Drill Down Capability Status Executive Business Project Portfolio Management Units Database Policy Approvals/Adjustments/Status Budget Proposals Vision Business Cases Strategy Project Justification Bus.Trends • Program Status Direction Standard • Program PROJECT Reporting Forecasting Requirements • Schedule MANAGEMENT Performance OFFICE • Project Funding Training • Resource Analysis and Allocation • Projects Disposition • Issues/Resolutions PMO Tools Resource • Overtime Reporting Pool • Cost Overrun PMO Operations • Business Function/ Guide Program Evaluation • Contract Analysis • Program Exception Process Contractor Analysis Database Library • Budget Analysis • Problem Analysis

31. PMO Focus Areas Project Management Financial Technology Quality Assurance Business Strategy Operations • Resource organization/management • Employee satisfaction/ retention • Project Authorization • Mapping to business goals • Meeting customer demands • Risk mitigation • Ensuring quality project outcomes • Budget planning • Cost benefit analysis of projects • Monitoring project investment • Leveraging current technology • Maximizing technology effectiveness • Mentoring • Issue resolution • Scope control • Deliverables • Change control • Resource fulfillment • Project Status Reporting The Project Office facilitates project success by focusing on all key aspects of a project:

32. The SPO and the PMO The Strategic Planning Office Vision and Strategy Portfolios, Programs and Projects The Project Management Office

33. Project Governance Defined “Ultimately, project governance is the responsibility of the board of directors and executive management. It is an integral part of enterprise governance and consists of the leadership and organizational structures and processes that ensure that the organization’s projects sustain and extend the organization’s strategies and objectives.” ITGI document: Board Briefing on Governance The Driver

34. Enterprise and Project Governance Enterprise Governance Operating CEO COO Departments The Driver Project Senior Senior Senior Governance* User Business Technical * = Level of Project Project Manager Governance staffing tied to project visibility and delegation of authority PMO Project Team QA

35. The Processes and Techniques for Strategic Planning … and commitment

36. Establishing Project Portfolios BUSINESS STRATEGY A BUSINESS STRATEGY B BUSINESS STRATEGY C $ $ TOTAL COST PORTFOLIO B TOTAL BENEFITS COST PROGRAM X BENEFITS COST PROGRAM Y BENEFITS $ PROJECT 1 $ $ PROJECT 4 $ $ PROJECT 2 $ $ PROJECT 5 $ $ $ $ $ PROJECT 3 PROJECT 6

37. Establishing a Strat Planning Cycle Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Execute the Business Plan and the I.T. Plan Prepare/ Review Strategic Business Plan Develop Tactical Plan from the Project Portfolio Performance (Monitor/Evaluate/Report) Prepare/ Review Project/ Programs Portfolio Submit Tactical Plan to the PMO/ Budgeting Process Determine Required Changes to the Planning Process

38. Using a Standard Methodology for Strategic Planning Project Initiation Business Strategy Definition Portfolio Development/Alignment Identify Programs / Projects Project Closure Manage it like any other project!

39. Business Strategy Definition (Standard Methodology) Major Steps: Industry Analysis Organization Analysis Business Unit Analysis Organization Infrastructure Analysis Business Strategy Definition and Review Definition of Portfolios of Programs and Projects

40. Business Strategy Definition (Standard Methodology) Major Deliverables: Industry Components, Trends and SWOTs Organization and BU Culture, Trends, Mission, Vision, Objectives, Critical Success Factors and SWOTs BU Significance and Financial Analysis Activity and Information Needs Analysis Business Strategy Vision, Mission, Long-Term Objectives, Strategies, Goals, Critical Success Factors Portfolios of Programs and Projects

41. Strategic Plan Format (Standard Methodology) Executive Overview Current situation analysis for the organization and its stakeholders Definition of business strategiesand supporting projects Prioritized projects and description Financial and tactical plans Elapsed time to develop?

42. A Few Issues Issue # 1 – How long does it take to develop the strategic plan? Issue # 2 – How much will it cost to develop the strategic plan, if led by an external consulting group? Issue # 3 – How long will this strategic plan remain current?

43. How About Some Speed? As the world continues to accelerate… As the current business climate demands quick action… As new strategies are required almost on a daily basis… …Can we do things faster? Can we develop a strategic plan in 2-3 days?

44. JAD for Strategic Planning JAD (Joint Application Development) is a structured meeting, conducted by a neutral facilitator, designed to extract high-quality information from the meeting participants, using a compressed timeframe and a workshop environment to enhance the process. JAD strongly complements, but does not replace, analytical methodologies. Yes!

45. Structured Agendas-The Standard JAD Agenda • Introduction • Review Purpose, Scope, Objectives • Ground Rules • Executive Sponsor Kickoff • I.T. Perspective • [ Session Approach ] • Review Issues • Review Design • Evaluate Workshop

46. Structured Agendas - A few JAD Session Approaches • Strategic Business Planning Approach • Business Reengineering Approach • I.T. Planning Approach • Project Scope Definition • Project Requirements Definition • Project Management • Delphi Estimating Sessions • Detailed Project Planning Sessions • And many more…

47. Strategic Business Planning • Define Vision and Mission of activity • Define Guiding Principles • Analyze current situation • Analyze competitive situation • Define Objectives and Goals • Develop Business Strategies • Define Critical Success Factors • Design Programs, Projects and Resources • Describe support Organization • Define follow-on activities Structured Agendas

48. Many Techniques Available Vision/Mission Definition Barriers to Entry Opposing Forces Stakeholder Analysis Strengths, Weaknesses, Opportunities and Threats (SWOT) Balanced Scorecard F.I.S.T. Value Chain Analysis

49. Vision Statement Set of operationally meaningful statements Focuses on what the organization wishes to become Takes into consideration matters of strategic importance: Mission Driving Force Stakeholders

50. Vision Statement What is the thrust or focus for future business development? What is the scope of products, services and markets that will --- and will not --- be considered? What is the future emphasis or priority and mix for products, services and markets that fall within that scope? What key capabilities are required to make the vision happen? What does this vision imply for growth and return expectations?